Group 1 Automotive Q2 Revenues Up 3.9%
Net income was $40.04m for the second quarter of 2011, or $1.72 per diluted share, compared to $20.75m, or $0.88 per diluted share, for the same period in 2010.
For the second quarter of 2011, total cost of sales was $1.22 billion, compared to $1.19 billion for the same period in 2010. Gross profit was $244.21m, an increase of 7.7 percent, compared to $226.62m for the same period in 2010, as the company successfully managed through the low-inventory sales environment.
On a same-store basis, the company reported 7.1 percent growth in gross profit on 9.1 percent higher revenues, reflecting increases in all operating segments from the prior year. Selling, general and administrative expenses as a percent of revenues improved 60 basis points to 12.5 percent, as expenses grew at a slower pace than revenues.
Earl Hesterberg, president and CEO of the company, said: â€œDespite an industry SAAR nearly one million units below the first quarter and severe supply shortages in the 62 percent of our business normally represented by Japanese brands, Group 1's operating team turned in one of the best profit performances in our company's history.
â€œWe were able to generate revenue increases in every business segment, significantly increase our new and used vehicle margins and maintain strong expense controls in a constrained vehicle sales market.â€
Will the firm improve revenues in Q3?
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